96% of young workers want their company do to more about sustainability

According to an Indeed survey of more than 23,000 Gen Z and millennial workers last year, the majority of both demographic groups research a company’s sustainability initiatives before accepting a job offer, and 96% want to push their companies to do more. 

A recent EY study found that 54% of CEOs say sustainability is a higher priority to them now than it was a year ago. However, EY also found that most CEOs consider sustainability a long-term focus, and only 16% consider decarbonization of business models and achieving net zero as a top-three strategic priority over the next 12 months. 

Unfortunately, slow, long-term change is a pace at which we can no longer afford to operate. Business leaders need to embed sustainable best practices and teams in every level of their companies today to have an impact on our environment and strengthen their businesses.

Companies do not need to choose between sustainability and profitability. A 2023 report by Deloitte showed that 84% of business leaders agree that global economic growth can be achieved while also reaching climate change goals. There are also numerous incentives, such as the Energy-Efficient Commercial Buildings Deduction and Advanced Energy Project Credit, that help businesses invest in sustainability initiatives.

According to a report published by IBM, three-quarters of CEOs recognize the need to prioritize sustainability, but only 30% are making significant progress. Effective sustainability is a full-time job. It’s clear that more resources—and dedicated teams—are needed to implement environmentally conscious practices that help bridge this gap between intention and execution. 

How companies can prioritize sustainability

No matter the industry, companies need to establish sustainability teams that can help develop and execute strategic interventions that achieve company goals. By centralizing expertise and resources into these teams with Chief Sustainability Officers, sustainability initiatives are developed and implemented to support the company’s objectives and foster a culture of environmental consciousness and accountability throughout the organization. For example, a residential developer with properties across North America should hire a sustainability manager for every major city where they operate. This role will ensure sustainable practices are incorporated into their operations to minimize environmental impact.

Still, as businesses embark on their sustainability journey, it’s crucial to remember that the ultimate goal is a significant net improvement in sustainability practices. The first step is identifying environmental impacts, including department activities, manufacturing resources, energy usage, and delivery methods. Conducting a materiality assessment helps set clear objectives, identify gaps, and develop strategies for a sustainable future. Next, companies need to guarantee adherence to local, state, and federal regulations. Moreover, for successful international operations, compliance with the EU’s sustainability regulations is essential. Understanding both materiality and location-based regulations ensures a comprehensive and compliant sustainability program.

Some examples of smaller corporate sustainability initiatives contributing to broader sustainability efforts include remote-first policies and community projects. According to one estimate, as of 2023, 12.7% of employees work remotely, and that’s expected to increase to 22% by 2025. By allowing employees to work remotely, teams can cut down on their commutes and their carbon footprints. 

But while not every company can be 100% virtual, there are many ways companies can reduce their carbon footprint. For instance, at Aquent, we engage in projects with local townships to move toward a carbon-negative future. But, taking on these projects and discerning where changes can be made to have the greatest impact requires time and expertise. This is where a dedicated sustainability team can be especially transformative in achieving sustainability goals. 

After the initial investment, making these changes will only continue to help businesses. Research by McKinsey found that executing new policies to tackle resource efficiencies could, in some instances, positively affect a business’s operating profits by up to 60%. Sustainability initiatives often reduce costs over time—for instance, solar energy is often considered the lowest-cost resource—and with the right teams, these initiatives are more than just cost reducers, they are income generators. A 2023 Sustainable Brands study revealed that companies with higher environmental, social, and governance (ESG) ratings had annual returns of 12.9% globally, compared to 8.6% for companies with lower ratings. 

The workforce increasingly cares about companies’ commitment to these initiatives. Prioritizing sustainability impacts a company’s hiring and retention and increasingly becomes part of its public reputation. Investing in meaningful ways—more than just buying carbon offsets—is paramount. Through work location policies, long-term community initiatives, and the integration of sustainability teams, companies can show they are truly committed to achieving their sustainability goals.

There is still time to improve our environmental impact—but time is of the essence. CEOs and business owners must prioritize sustainability best practices, no matter the industry. Doing so is not just a financially sound decision; it sets a precedent for all leaders moving forward.